Bitcoin stumbles amid the new trade war…

Bitcoin Stumbles Amid The New Trade War Between The United States And China 

Market Analysis by Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS.com

“Bitcoin halted its rally after reaching the $116,000 zone and posted a drop of more than 5%, retreating to $110,000. The plunge was driven by market jitters following U.S. President Donald Trump’s announcement of 100% tariffs on Chinese products, which wiped out nearly $500 billion in cryptocurrency market capitalization within hours.

The sharp market reaction was not limited to Bitcoin. Last week, the leading cryptocurrency touched lows of $102,000, while gold reached new all-time highs, consolidating its position as a safe haven against global uncertainty. This contrast highlights how investors are temporarily migrating to traditional assets in search of stability.

The recent volatility also confirms Bitcoin’s growing correlation with stock markets. Major Wall Street indices fell after the announcements of renewed trade tensions, and Bitcoin immediately mirrored the downward trend. However, one factor cushioning losses is the solid inflow into BTC ETFs, indicating that institutional investors remain committed to the cryptocurrency in the medium term.

The impact also extended to the altcoin ecosystem. Ether, the second-largest cryptocurrency by market capitalization, fell more than 6%, while XRP accumulated losses of over 9%. The only exception was Solana, which saw a slight rebound thanks to renewed developer interest in its network and the growing volume of decentralized applications using it.

The geopolitical environment adds an extra layer of pressure. Beijing responded to Washington’s announcement by stating it is ready to “fight to the end” on trade, raising the risks of a prolonged tariff war. This confrontational scenario has kept investor appetite low for assets perceived as risky, including cryptocurrencies.

At the same time, analysts emphasize that Bitcoin’s decline comes at a moment of heightened macroeconomic sensitivity. Markets had already been pricing in the possibility of new restrictive measures in the Federal Reserve’s monetary policy, and combined with trade tensions, this reinforces the perception of global financial fragility.

Even with this pullback, some experts argue that current Bitcoin levels could represent an entry opportunity for those betting on a recovery in the coming months. Support around $100,000 could solidify if ETF inflows remain strong and if investors once again view the cryptocurrency as a reserve asset in prolonged inflationary contexts.